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Whether you are the Director of a multi-million organisation, setting up a new company inGreece , or have a business venture in Greece, knowing where your money goes and how much you spend on employment resources is essential. Staff costs in Greece are one of the biggest expenditures for a company, but it isn't just wages that cost the business money, there are additional expenditures, known more commonly as 'on-costs' or 'onboarding-costs'.
The True Cost of an Employee in Greece in 2022 Calculator is designed to provide insight into the full costing model for employing a new employee in Greece and, together with iCalculators Greece Payroll calculator for 2022, provide the gross employment costs of your current staff in Greece, help you budget employment costs in Greece for your financial year, anticipate staff costs for future expansions in Greece and review past costs in order to gauge future employment costs in Greece.
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Calculating the true cost of an employee in Greece can seem very complex but, as with most financial calculations with multiple elements, they can each be placed into simple cost buckets which allow us to provide a simple working formula:
Each of these costs includes a number of sub elements which are defined within the calculator where you can enter specific amounts or a percentage rate for benchmarking expenditure.
The True Cost of an Employee in Greece Calculator is similar to the Cost Per Hire Calculator with the addition of live income tax and salary deductions for an employee working in Greece.
The 'True Cost of an Employee in Greece' calculator is designed to encompass all possible financial cost factors that are generated when hiring a new member of staff in Greece. The calculator is geared towards senior staff and allows for the hire and set up of the staff member in a new office in Greece with no existing resource. Whilst not essential for static companies in Greece, this enables more flexible companies to cost for the set up and establishment of new offices in new locations with in Greece or for the setup of a new company branch in in Greece etc.
In order to simplify first time use, the calculator has been pre-populated with sample percentage rates and or sample costing fees. These figures provide an initial benchmark for your costing analysis and can be edited as required. We welcome your feedback and suggestions to help further improve the 'True Cost of an Employee in Greece' calculator.
The Annual Basic Salary in Greece is the amount you pay your member of staff each year before any benefits or benefits in kind are included. i.e. Without any deductions for tax, social security, pension schemes etc. and any bonuses, dividends, shares, etc have not been added. It should not be confused with 'gross pay', which would include all money earned in Greece for the year.
Annual Bonuses in Greece are a great incentive to keep staff on board and encourage loyalty, greater output and commitment. Many companies in Greece give an annual monetary bonus, but any form of payment is considered a bonus or 'benefit'. When a gift is given instead of a financial award, it is deemed a 'benefit in kind' and a monetary value must be awarded to the item, to enable the relevent income tax in Greece to be paid on the gift.
Not all of the money a person earns in Greece is taxable. Personal allowances, tax credits and tax relief schemes can factor the way taxable income is determined in in Greece, we factor each of the relevent elements into this calculation and provide a breakdown of how we calculated the salary with a supporting salary example for Greece.
The true salary cost in Greece is the total amount of the basic pay, bonuses and employer payroll costs that the company pays out each year for wages in Greece.
Company pension schemes in Greece are becoming more and more popular. Company pension schemes vary in in Greece but we include this as a factor as you may operate a standard company pension scheme which you wish to extend to your new employee in Greece in addition to any private pensions they may have in Greece or state pensions in Greece.
Private medical insurance is popular is the US and is becoming increasingly popular in Greece. It is one of the 'benefits in kind' an employer can offer. A benefit in kind is an award given by the employer that is not financial, though usually will have some monetary value. Private Medical Treatment in Greece is complicated in terms of taxation in Greece, Private (Company) Medical plans can include dental care, ocular needs (eye tests, contact lenses, spectacles, etc) and general health cover ( in Greece and when travelling outside Greece). For simplification, we treat medical costs in Greece as a flat employee cost for the directional calculation within this tool, this is something that you would have to discusses with your payroll service provider in Greece.
An employer can elect to give employees in Greece shares and some benefits may be realised by the employee, such as tax relief. The company will bear the cost of providing the shares to the employee, but may be eligible for tax relief in Greece in some circumstances.
Total Employee Benefits is the total amount of any provision an employer gives to an employee in Greece, as a benefit, that is not part of a salary agreement or bonus. This is what the company pays out each year for pensions, medical insurance, company car, shares/equity, etc.
This is one of the unknown/unpredicted costs that a company in Greece can face if not planning an recruitment advertising campaign in Greece appropriately. Anything that costs money when advertising for staff in Greece should be included in this budget, this includes all media methods (hoardings, T.V., radio, telephone, internet, mobile, presentations, etc). You could also add hospitality and meeting costs in Greece, for planning the advertising campaign, otherwise place them in the management administration costs. There is a danger that these costs can escalate if not tracked effectively, so it is wise to have a budget cap for advertising and decide exactly what it will cover.
Agency fees in Greece are what the company pays to another business to manage a particular aspect of work, in this instance, it refers to the recruitment of staff in Greece and forms part of the 'onboarding' costs.
Recruiters costs are what the business pays for individuals to manage the hiring of staff in Greece. It can include wage/fee for recruiters in Greece, location costs for interviews, stationery, administration, interview time, travel to or within Greece and subsistence, etc.
Employee referral costs are the costs associated with providing a finder's fee or recognition reward when an employer recommends a friend etc. who subsequently is hired by the company in Greece.
It is important to anticipate and understand what travel costs have been incurred or are likely to be incurred in the future. It can be difficult though. Decide who is eligible to be reimbursed, what rate will be paid and whether there is a cap on the total amount paid. Some travel costs in Greece can be subject to tax relief.
Relocation costs are what a business pays to an individual who is required to move home permanently to a new location in Greece, in order to accommodate work needs. When considering relocation costs in Greece, remember to include the actual physical cost of the move, plus any paid leave and additional benefits, such as contributing to furnishing the new home, storage of furniture, etc.
Management administration costs can include meetings, hospitality, staff to carry out checks, arrange timetable, stationery, etc
Payroll costs in Greece are the expenditure a company bears for preparing and distributing pay to staff. It includes net pay and the materials used to calculate that pay, as well as labour costs to complete the payroll work and legislative costs associated with Greece payroll management .
Legal costs in Greece can include insurances, assurances and legislative requirement costs. When recruiting internationally it is important that you have any contracts checked by a specialist international employment lawyer and is familiar with employment law in Greece.
'Onboarding costs' are the total amount of the one off costs associated with hiring a new staff member in Greece. On-boarding costs are limited to the hiring process only, they are not ongoing financial commitments like salary or office space costs etc.
Office and business space costs in Greece can vary substantially dependent on the desired office location.
Communications setup costs include Internet, mobile telephone, FAX and fixed landline telephone costs.
The Line Manager Resource costs in Greece are those associated with managing the individual in a traditional hierarchical model. This include HR (Human Resource), Health and Safety, Finance and pastoral care. As a baseline cost, a figure of 10% is recommended.
Total Facilities and other costs are the sum of the office set-up in Greece, communications systems and line management. Office set-up is simply the initial member of staff in and initial organisation. Communications systems include telephone, mobiles, faxes, internet, etc.
In order to have an effective workforce, it is essential to have 'knowledgeable in their field' members of staff and therefore wise to have an appropriate training programme in Greece. Some training is required by Law, such as Health and Safety (H&S) awareness. Training also includes orientation/induction periods, shadowing, in-house skills updates and external courses, as well as professional qualifications.
The true cost of an employee in Greece is the overall amalgamation of all the costs listed above. It is quite staggering when you take into consideration how much a member of staff in Greece can cost during the first year of employment. It is essential to maintain a happy workforce to keep stability as this avoids churn and in turn, drive down recruitment costs in Greece. After the initial year, staff costs should come down, onboarding costs in Greece are experienced in the first year of employment only.
We also provide Cost of Employment and Payroll Calculators for Greece for the following Tax Years